Jaypee offers to finish incomplete Sports City projects in next two years
NOIDA: The Yamuna Expressway Authority’s board on Friday decided to restore over 1,000
hectares of land to Jaypee Associates Ltd (JAL) in proportion to the restoration fees deposited
by the developer. The resolution plan presented by Jaypee to complete projects and pay the
land dues was discussed at the Authority’s 75th board meeting.
On September 29 this year, the Allahabad high court directed the developer to deposit Rs 100
crore with the Authority and submit a resolution plan. JAL had approached the court
against YEIDA’s order cancelling the allotment of 1,085 hectares of land given to the developer
about three years ago. The next date of hearing is December 12.
YEIDA CEO Arun Vir Singh said, “The board has decided to restore the land to the developer in
proportion to the restoration fees deposited by them. We have been given the developer time till
December 2023 to do so. It is in accordance with a reschedulement plan given to JAL in 2019.”
However, the CEO said, the board has decided to reject Jaypee’s offer of returning a portion of
the unsold group housing and commercial land (75 acres) to the Authority for the recovery of
dues. “Instead, the Authority has asked the developer to first pay the restoration fees for this
land and then sell it on its own. The developer has been asked to subsequently clear the
amount (Rs 759 crore) payable towards additional compensation to farmers. For all this work,
Jaypee has been given three months,” Singh added.
The CEO also said that the developer has offered to complete all the residential projects in the
next 18-24 months. “Following the land allotment cancellation in December 2019, YEIDA
decided to complete the unfinished projects on its own. Jaypee in its proposal said it would
complete the project after selling unsold land within 18-24 months.”
After the board’s decision, YEIDA would now submit its report in the Allahabad HC.
JAL was allotted 1,085 hectares of land for developing a Sports City along the Yamuna
expressway in Sector-25 under the special development zone (SDZ) scheme in February 2009,
but the firm started defaulting on payments within two-and-a-half years.
YEIDA sent at least 28 notices to the company over the years, but to no avail. On December 21,
2019, YEIDA’s board took a decision to cancel the allotment of Sports City and the cancellation
order was issued in February 2020.
Jaypee challenged YEIDA’s in Allahabad HC soon after that. In February this year, the
developer informed the court that it was willing to clear all the dues, including defaulted amount,
as pointed out by YEIDA and also provide a road map for completing residential projects for the
sake of the interest of homebuyers. The developer had also assured the HC that it would “make
all efforts to resolve the dispute even outside the court”.
During the last hearing in September, the developer placed a proposal before the HC explaining
how it intends to revive the project and liquidate all its liability towards YEIDA and homebuyers.
The Allahabad high court then directed Jaypee to deposit Rs 100 crore within a month with
YEIDA as upfront money for considering its proposal. In the matter filed by Jaypee Infratech in
NCLAT, the Authority would submit its reply to the tribunal by December 12.
“All parties have been directed to submit their final submission in the case. In our affidavit, we
have written that NCLT-approved company Suraksha will have to pay the amount payable to
farmers in additional compensation,” the CEO said.
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